VeriSign has agreed to abstain from marketing practices that misled consumers into transferring domain names to its Network Solutions business.
In the settlement with the US Federal Trade Commission, VeriSign also agrees to allow the FTC to monitor its compliance with the settlement and recommits to providing refunds or free service to customers who responded to an allegedly deceptive marketing mailing.
In the mailing to customers of competing domain name registrars, VeriSign's Network Solutions warned that their domain name was about to expire and offered to renew it for a fee. The mailing did not state when the name would expire which, in some cases, was months or years off. "Renewal" actually meant transfer of the domain to Network Solutions, making the notices deceptive, the FTC said.
The settlement with the FTC follows a class action settlement in January in which VeriSign agreed to refund customers who had responded to the mailing and had second thoughts, or give the customer a year of free domain registration if they wanted to renew their domain.
Joris Evers writes for IDG News Service